Financial Tech at a new low

Financial Technologies has hit a new 52-week low today at Rs.587.50 and though it has recovered from this low level, it remains in the red, currently down 5.6% at Rs.595.75.

The stock is painted a deep hue of red after the Govt asked National Spot Exchange (NSEL), a subsidiary of consumer affairs department, to refrain from launching contracts of new commodities until the Govt finalises a new regulatory framework.

The Forward Markets Commission (FMC) had found breaches of the conditions under which NSEL was granted exemptions to allow carry forward contracts for a day. This kind of flexibility is allowed only to farmers. The company has since then been under the cloud and has been trying to get more clarity on this. The company’s contention is that Spot Exchanges, unlike future contracts, as a rule do not have contracts with Due dates.